Is Evli Pankki Oyj’s (HEL:EVLI) CEO Being Overpaid?

Maunu Lehtimaki has been the CEO of Evli Pankki Oyj (HEL:EVLI) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Evli Pankki Oyj

How Does Maunu Lehtimaki’s Compensation Compare With Similar Sized Companies?

According to our data, Evli Pankki Oyj has a market capitalization of €167m, and paid its CEO total annual compensation worth €488k over the year to December 2019. We note that’s an increase of 11% above last year. We think total compensation is more important but we note that the CEO salary is lower, at €382k. We examined companies with market caps from €93m to €374m, and discovered that the median CEO total compensation of that group was €488k.

Pay mix tells us a lot about how a company functions versus the wider industry, and it’s no different in the case of Evli Pankki Oyj. Talking in terms of the sector, salary represented approximately 62% of total compensation out of all the companies we analysed, while other remuneration made up 38% of the pie. Evli Pankki Oyj is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation

So Maunu Lehtimaki receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Evli Pankki Oyj has changed over time.

HLSE:EVLI CEO Compensation, March 20th 2020
HLSE:EVLI CEO Compensation, March 20th 2020

Is Evli Pankki Oyj Growing?

Evli Pankki Oyj has increased its earnings per share (EPS) by an average of 10.0% a year, over the last three years (using a line of best fit). It achieved revenue growth of 11% over the last year.

I think the revenue growth is good. And the modest growth in earnings per share isn’t bad, either. So while we’d stop just short of calling this a top performer, but we think it is well worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has Evli Pankki Oyj Been A Good Investment?

Boasting a total shareholder return of 37% over three years, Evli Pankki Oyj has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

Maunu Lehtimaki is paid around the same as most CEOs of similar size companies.

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I’d venture that the CEO pay is appropriate. Shifting gears from CEO pay for a second, we’ve spotted 3 warning signs for Evli Pankki Oyj you should be aware of, and 1 of them is potentially serious.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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